Startups and scaleups create the vast majority of jobs in the formal economy, providing, on average, 66% of the jobs worldwide, and the greatest share of jobs in low income countries. Moreover, the small and medium enterprise (SME) sector is important not just for job creation, but also for economic growth, thanks to its outstanding capacity to increase productivity through innovation. For example, approximately 85% of growth between 1900 and 1950 is attributable to innovation, rather than increased usage of inputs, and the financing of SMEs via risk capital —most notably venture capital, which is also called smart capital because it combines financing with active hands-on support— has been found to be three to four times more effective at generating innovation than other alternatives, such as corporate research or development funding.

Since my first visit to this city back in 2006, many things have changed. At the time, there was little startup activity and only a few pioneers –incubadora Creame and Promotora– establishing angel networks and the first Venture Capital fund of Colombia. Today, the city is home to other funds, co-working spaces, accelerators, and Ruta N: an initiative that turned around a “suspicious” neighborhood in Medellin and made it into a flagship for innovation and entrepreneurship. Medellin has been a good example of how the public and private sectors can join forces to create a vibrant environment where entrepreneurship can flourish.

By Anne Ravanona, Founder and CEO of Global Invest HerLooking for funding is difficult for any entrepreneur and the hard truth is that it is harder for women entrepreneurs. Today, only 4% of Venture Capitalist and 20% of Business Angels in the US are women. In the UK, only 14% of business angels are women and am pretty sure the figures may be even lower in Latin America. Ok so that was the bad news! The good news is that things are moving forward, although still slowly.

Last week, I sat with four other judges in Miami, listening to the finalists at the WeXchange Latin American women’s entrepreneur pitch competition. The businesses and entrepreneurs were strong evidence of the rise of female entrepreneurs in Latin America.